European shares edge higher as bond yields ease

European equities moved modestly higher on Thursday, ending a run of three consecutive losing sessions, as a worldwide sell-off in government bonds began to ease, according to Business Recorder. The pan-European STOXX 600 rose 1% to 646.15 by 0710 GMT, having touched a one-month low the day before, while regional benchmarks showed mixed results.

Germany's DAX gained 0.1%, Spain's index added 0.3%, and France's CAC 40 slipped 0.1%. The sell-off had been fuelled by a recent intensification of the conflict involving Iran, which lifted crude prices and deepened fears about sticky inflation, mounting sovereign borrowing and firmer monetary policy.

Oil eased but stayed above $90 a barrel, and euro zone government bonds retreated from recent highs. Deutsche Telekom rose 1.7% after reports that Elliott had taken a stake in the company. Soitec climbed 10% after the French maker of chip materials raised its second-quarter and full-year outlook, pointing to faster uptake of wafers for optical links used in AI data centres. Traders are now awaiting Friday's US non-farm payrolls figures for hints on the Federal Reserve's rate path, after hawkish remarks from Chair Kevin Warsh last week raised bets on more rate increases.